EUR/USD continues to show very little activity on Tuesday, as the pair trades in the mid-1.34 range in the European session. On the release front, it’s another quiet day, with just one Eurozone release, as German Import Prices posted a weak gain of 0.2%. In the US, today’s highlight is CB Consumer Confidence. The markets are expecting another strong showing from the June release.
The euro continues to trade at its lowest levels since November. Many investors remain on the sidelines, waiting for three key events on Wednesday which could move the markets. The Federal Reserve will release a policy statement and the markets will get a look at US Advance GDP and the ADP Nonfarm Payrolls. These events could shake up EUR/USD.
Soft German data continues to concern the markets. German Import Prices posted a gain of 0.2%, which was the best showing in 2014. This was shy of the estimate of 0.3%. On Friday, German Ifo Business Climate, a key indicator, dipped to 108.0 points, its third straight decline. On the inflation front, Germany has not been immune to Eurozone inflation woes, and we’ll get a look at German Preliminary CPI on Wednesday, with the markets anticipating a small gain.
EUR/USD for Tuesday, July 29, 2014
EUR/USD July 29 at 8:15 GMT
EUR/USD 1.3434 H: 1.3440 L: 1.3427
- EUR/USD has shown very little movement in the Asian and European sessions.
- 1.3346 continues to provide strong support.
- On the upside, 1.3487 is an immediate resistance line. 1.3585 is stronger.
- Current range: 1.3346 to 1.3487
Further levels in both directions:
- Below: 1.3346, 1.3295, 1.3175 and 1.3104
- Above: 1.3487, 1.3585, 1.3651 and 1.3786
OANDA’s Open Positions Ratio
EUR/USD ratio is almost unchanged on Tuesday. This is consistent with the lack of movement we’re seeing from the pair. The ratio has a majority of long positions, indicative of trader bias towards the euro breaking out and moving to higher ground.
- 6:00 German Import Prices. Estimate 0.3%. Actual 0.2%.
- 13:00 US S&P/CS Composite-20 HPI. Estimate 9.8%.
- 14:00 US CB Consumer Confidence. Estimate 85.5 points.
*Key releases are highlighted in bold
*All release times are GMT